Lease or Buy M3?

[Jonny550]

Looking to get into an E90 M3, And iam not quite sure witch route i want to take. Obviously i have 2 options but need some advice.

If i opt for a finance, Iall most likely be putting about %20 down on the car, Plus
looking to get at the very max a %10 int rate. If not iam walking. However i could get an 09-10 and it will be in the $40-50k range.



Opt for lease, I put much less down, More towards %5 down. I dont own it however it will be brand spanking new. Plus I Have to worry about miles, as i drive ALOT! . All of us know a newer M3 will be in the $70's so its another thing to look at however its a lease so iam not leasing all of that money.




Witch route would you take if you had the option. Thanks alot guys.

[THE TECH]

What about doing the 7 MSDs? That should help with the lease.

[nyannitello]

I leased my 11' AW M3 9/23/10 and love it. I am a big fan of leasing since I do not keep cars/trucks for more than 24 months or so and I am always in something brand new new with minimal money down and a lower monthly payment (in most cases). I don't daily my M3 though...for someone who is going to drive over 15k a year and plans to keep the car more than a few years I would buy. Then again to be honest if you are near an 10% interest rate I would be shopping for a better rate somewhere...

[Jonny550]

%10 being the max, looking for a %5 though.

[///M_Monster]

BUY.

[F82_SID]

IMO BMW Select is the best way to go if you want to keep you payment low and still have the benefits of ownership (i.e mod how you want and not have to worry about mileage).

Yes you have a "balloon" payment due at the end of the term but you can turn around and refinance the amount due, or cut them a check for the balance, or just sell the car back and get into something else. My car had a sticker of 74k, I put 12 down, did BMW Select at 2.9% (I think) and my payment is 780. I think I did pretty good. The balloon due at the end of the 48month term is only around 20k. If I put an extra 5k a year on my car then at the end of the 48 months I will actually own it.

[Capt Awesome]

Penfed CU has rates of 2% for up to 48 months on new and used auto loans. I think that's the best rate out there at the moment unless your local dealer has a promotion going on.

[Mr. ///M3 RD]

Originally Posted by SehrSchnell

Dude, that was pretty hard to read... I'm confused about the 10% finance rate... WTF?! That seems... hmmm... a little high?

Also, never put anything down on a lease - never!

I do agree with you ..... I just put up a poll so this can be better understood

[persian54]

Originally Posted by Jon335iFL

%10 being the max, looking for a %5 though.

10% interest rate?
5% rate?

If your credit is that bad, you won't be able to get a favorable lease

[Jonny550]

Originally Posted by persian54

10% interest rate?
5% rate?

If your credit is that bad, you won't be able to get a favorable lease

Its not, low/mid 700's actually, I just didnt know you could get that good of rates from BMW?!.

[persian54]

Originally Posted by Jon335iFL

Its not, low/mid 700's actually, I just didnt know you could get that good of rates from BMW?!.

Can you please be a little more elaborate in the way you type and what you're trying to express?

It's a bit difficult to know what you're referring to and what you are saying.....

[SamS]

Originally Posted by Capt Awesome

Penfed CU has rates of 2% for up to 48 months on new and used auto loans. I think that's the best rate out there at the moment unless your local dealer has a promotion going on.

This.

I did PenFed for 60 months at 2.49%. I couldn't get the 1.99%, I think BMW rates or higher, or 1.99% caps at 48 months.

OP, doesn't really sound like you got your biz in order if you're expecting a 10% rate.

[Dave07997S]

Originally Posted by Jon335iFL

Looking to get into an E90 M3, And iam not quite sure witch route i want to take. Obviously i have 2 options but need some advice.

If i opt for a finance, Iall most likely be putting about %20 down on the car, Plus
looking to get at the very max a %10 int rate. If not iam walking. However i could get an 09-10 and it will be in the $40-50k range.



Opt for lease, I put much less down, More towards %5 down. I dont own it however it will be brand spanking new. Plus I Have to worry about miles, as i drive ALOT! . All of us know a newer M3 will be in the $70's so its another thing to look at however its a lease so iam not leasing all of that money.




Witch route would you take if you had the option. Thanks alot guys.

The fact you drive a lot of miles and maybe need to put down 5% (not a smart idea with a lease, think minimum drive off) I would vote you attempt to buy. I lease my vehicles, as I am self employed and I am able to take advantage of the tax write off afforded to me by leasing. If the only way you can afford a brand new M3 is by leasing than I would look at used and buying vs. leasing new.

One other thing..this is constructive criticism, you really need to spell check and re-read your posts before you finalize your post. Maybe english is not your native language, if it isn't my apologies for my ignorance. Your post was kind of hard to read and when making a post regarding finances it is even more important. Just an FYI, its which not witch route would you take...

I am not the spelling or grammar police, my business partner dogs me out all the time and I probably made a few errors here. Its just if I were you I would make an extra effort critiquing your own post before hitting the post button, especially if the post is regarding finances.


Dave

[ES_TRADER]

it feels better to own a M3 vs rent a M3....id be cool with renting but the whole mileage restriction thing is a big turnoff to me....however, if you own a business, leasing has better tax advantages, but you can still write of a purchase...so really...just buy it...it depends on your situation

[jphughan]

Originally Posted by Dave07997S

If the only way you can afford a brand new M3 is by leasing than I would look at used and buying vs. leasing new.

Dave

Nothing against leasing as it definitely has its advantages: potential write-offs, not having to deal with depreciation due to accident history, making it somewhat cheaper for those who don't like to keep a particular car very long, etc -- but if you're going to lease make sure you do so for those reasons and NOT "Wow it's like I get the same car but my payments are a whole lot less!!" That's what all the salespeople want you to believe, but that's not how it works in reality -- and you'll find out whenever you go to get your next car. Financing a car means you'll actually have some equity on the car you're trading in, whereas a lease you walk away with nothing. If you're ok with that because you'll just want to hop into another lease, that's all well and good, but just be aware that that strategy, while it does have its perks, in the long run is definitely NOT cheaper than financing. Serial leasers are paying the extra cost for the benefit of always having a new, in-warranty car, but it ain't cheap.

But I agree if you're expecting 10% APR or even 5%, you might want to dodge this bullet completely.

[persian54]

When you say you drive a lot, what's "a lot" ?

I have people who think driving 12k miles a year is a lot...that's normal

now, if you drive 20-25k per year, that's a completely different ball game..

[rye m3]

Originally Posted by Dave07997S

The fact you drive a lot of miles and maybe need to put down 5% (not a smart idea with a lease, think minimum drive off) I would vote you attempt to buy. I lease my vehicles, as I am self employed and I am able to take advantage of the tax write off afforded to me by leasing. If the only way you can afford a brand new M3 is by leasing than I would look at used and buying vs. leasing new.

One other thing..this is constructive criticism, you really need to spell check and re-read your posts before you finalize your post. Maybe english is not your native language, if it isn't my apologies for my ignorance. Your post was kind of hard to read and when making a post regarding finances it is even more important. Just an FYI, its which not witch route would you take...

I am not the spelling or grammar police, my business partner dogs me out all the time and I probably made a few errors here. Its just if I were you I would make an extra effort critiquing your own post before hitting the post button, especially if the post is regarding finances.


Dave

+1!
Too worried about the payments; can't really afford the car.

[Dave07997S]

Originally Posted by richpuer

it feels better to own a M3 vs rent a M3....id be cool with renting but the whole mileage restriction thing is a big turnoff to me....however, if you own a business, leasing has better tax advantages, but you can still write of a purchase...so really...just buy it...it depends on your situation

The tax advantages are greater with leasing than purchasing. Also, a good lease you still build equity. I lease my vehicle and I guarantee I feel I own it. I always sold my M3s at the end of lease and put some coin in my pocket. The only car that this didn't work for me was my 997S, these things just depreciate so badly.

If the lease has a low residual and a great money factor you will build equity just as if you purchased the car. Manafacturers subsidize leases to move vehicles with high residuals but terrible money factors...these are the leases that you will definitely be doing the "three and flee".

Dave

[SirLance99]

Originally Posted by Dave07997S

The tax advantages are greater with leasing than purchasing. Also, a good lease you still build equity. I lease my vehicle and I guarantee I feel I own it. I always sold my M3s at the end of lease and put some coin in my pocket. The only car that this didn't work for me was my 997S, these things just depreciate so badly.

If the lease has a low residual and a great money factor you will build equity just as if you purchased the car. Manafacturers subsidize leases to move vehicles with high residuals but terrible money factors...these are the leases that you will definitely be doing the "three and flee".

Dave

Can you please elaborate on this a little more. I'm going to lease as well as I'm self employed but do not know what you're saying on this. Thanks

[SamS]

Originally Posted by SirLance99

Can you please elaborate on this a little more. I'm going to lease as well as I'm self employed but do not know what you're saying on this. Thanks

I've leased a vehicle in the past where I've been able to profit by selling the car (truck, in this case) before I've turned it in.

A few months before the lease was up, I took it to Carmax. They gave me an offer on the spot which was a few hundred higher than my payoff amount. I took them up on the offer. They filed all the paperwork, and cut me a check within 24 hours. You could use the same concept with a private buyer, but the paperwork can get a bit tricky.

Just as an aside, that was the last time I leased. I really prefer straight purchase/finance these days. I feel it offers me the most flexibility.

[FVM3]

i cant understand what exactly you are typing

[persian54]

Originally Posted by Dave07997S

The tax advantages are greater with leasing than purchasing. Also, a good lease you still build equity. I lease my vehicle and I guarantee I feel I own it. I always sold my M3s at the end of lease and put some coin in my pocket. The only car that this didn't work for me was my 997S, these things just depreciate so badly.

If the lease has a low residual and a great money factor you will build equity just as if you purchased the car. Manafacturers subsidize leases to move vehicles with high residuals but terrible money factors...these are the leases that you will definitely be doing the "three and flee".

Dave

This was actually one reason that motivated me to get the M3 lol

The SLK still had about 4 or so months left, but the offer I got from CarMax and the dealer was $1500 more than the payoff at the time.
Also, I would have had to spend $400+ on Service C, AND paid a $600 deposition fee..

So $1500 in my pocket, and $1k saved... no brainer.
Drive off on the M3 was under $2k, so it worked out great.
Payments were a lot more a month...but it has been so worth it

I doubt I'll be able to do the same with the M3 though...I think my residual was 65%?
And on the new Z4, I think it was 82%?
No way I'll be able to sell either of these prior to lease end for profit...

Low residual = higher monthly, but chance to make $ back from selling the lease
high residual : lower monthly, lower cost overall most likely, little chance of making $ back from selling the lease